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Exercise

ABy Admin
May 26'23

Answer

Key: D

For the first split, ShelveLoc = Good, the answer is no, and the branch to the right is taken.

For the second split, Price = 120 ≥ 110, the answer is yes, and the branch to the left is taken. The node has a predicted value of 9.2.

Copyright 2023. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.

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